Issue: № 2, 2026
Doi: https://doi.org/10.37634/efp.2026.2.17
The paper reveals the features of the evolution of the regulatory and legal support for alternative forms of resolving economic disputes of city councils in various legal systems of the world. The identified stages of the evolution of this process include both the stages of its early formation (the times when different cultures developed informal mechanisms for resolving conflicts), and the stages of formalization in the context of supranational and national legal systems. It is noted that the use of alternative forms of resolving economic disputes of municipal councils in the EU has evolved significantly, which was due to the desire to reduce the number of pending court cases, promote more effective and accessible dispute resolution, and also promote better protection of the rights and interests of local communities. It should be noted that at the supranational level of the EU, a legal framework has been created to promote alternative forms of resolving disputes (including economic) of municipal councils. Namely, the Directive on Alternative Dispute Resolution (2013/11/EU) was adopted. The most common alternative forms of resolving economic disputes of municipal councils include mediation, arbitration, conciliation and negotiations, each of which offers different approaches to resolving disputes. The current state of ensuring the use of alternative forms of resolving economic disputes of municipal councils does not provide for separate regulatory and legal support, which necessitates the application of both supranational norms of EU law and national (mainly general) norms of law applicable to subjects of economic disputes. The development of the specified process at the level of such EU countries as Estonia and Lithuania has been analyzed. It should be noted that the state of its regulation is more effective in the legislation of Lithuania, in particular, the possibility of using alternative forms of resolving economic disputes of municipal councils in the context of mediation and arbitration is provided for, the features of the organization and types of which are quite clearly defined. It should also be noted that Lithuanian legislation considers municipal councils as entities (administrative bodies) that can voluntarily resort to mediation as an alternative form of resolving economic disputes. Although administrative mediation is distinguished as a separate subtype of mediation, it does not provide for separate legislative regulation of administrative bodies (including municipal councils). Estonia, unlike Lithuania, is currently at the stage of developing legislation in this area, despite the existence of framework regulations.
Keywords : evolution of regulatory and legal support for alternative forms of economic dispute resolution, city (municipal) councils, legal systems, pre-trial dispute resolution, EU supranational legislation, national legislation, Lithuania, Estonia
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